"Pure money lenders have no right to be on the board of a company as their vision is different. Only those shareholders who have at least 10 per cent stake could be represented in the board," A K Rungta, chairman of the chamber's committee on corporate governance, told reporters.

The chamber was also against any mandatory provision for enforcement of corporate governance, with Rungta saying that it should be optional for the companies to adopt such a code.

Finance Minister Yashwant Sinha had said in his budget speech that soon a code of corporate governance would be evolved and made mandatory for the companies to adopt it.

The chambers had recently expressed divergent views on the role of FIs, with the Confederation of Indian Industry (CII) supporting the institutions' right to decide on divestment of their equity in any corporate, with Ficci and Assocham wanting to prevent FIs from offloading their shares on their own.

Rungta said as lenders always securitised their loans and were concerned about the returns on their equity, their presence on the board would not serve the interest of the company.